(1)
(a) All monies paid to a licensee for payment of taxes, loan commitment deposits, work completion deposits, appraisals, credit reports or insurance premiums on property that secures any loan made or serviced by the licensee shall be deposited in an account that is insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration and shall be kept separate, distinct, and apart from funds belonging to the licensee.
(b) The funds, when deposited, are to be designated as an “escrow account,” or under some other appropriate name, indicating that the funds are not the funds of the licensee.
(2) The licensee shall, upon reasonable notice, account to any debtor whose property secures a loan made by the licensee for any funds which that person has paid to the licensee for the payment of taxes or insurance premiums on the property in question.
(3) The licensee shall, upon reasonable notice, account to the commissioner for all funds in the company’s escrow account.
(4) Escrow accounts are not subject to execution or attachment on any claim against the licensee.
(5) It is unlawful for any licensee knowingly to keep or cause to be kept any funds or money in any bank or other financial institution under the heading of “escrow account” or any other name designating the funds or monies belonging to the debtors of the licensee, except actual funds paid to the licensee for the payment of taxes and insurance premiums on property securing loans made or serviced by the company.
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